WAICA Re’s premium income hits N6.8b

Of the $58 million (N20.8 billion) total gross premium income generated by pan-African reinsurance company, WAICA Reinsurance Corporation Plc (WAICA Re), $19 million (N6.8 billion) came from the Nigerian operations.

The amount translates to about 30 per cent of the entire gross premium income generated by the group and an improvement from the $12.4 million (N4.4 billion) recorded in 2017 financial year.

In 2018, $12.89 million Premium Income was generated in Ghana; $7 million in French market; $1.24 million in Sierra Leone; $278,606 in Liberia; $234,159 in The Gambia; $3.1 million in Tunisia; $13.5 million from the Diaspora; while in Zimbabwean market, it made $304,621; and Kenyan insurance market posted $201,275.

Speaking at the sixth yearly meetings of the company, the Chairman, Kofi Duffuor, said there was a subdued gross premium growth of four per cent from $55.8 million in 2017 to $58 million in 2018.

He said growth was the result of the decision to concentrate on profitable businesses and stop business dealings with some brokers who only add negatively to the company’s debt ratio by not paying premiums.

The growth, he said, was driven mainly by its Tunisia, Nigeria and Francophone markets, which grew by 134 per cent, 52 per cent and 51 per cent respectively.

Strong growth, he said, was also recorded in Sierra Leone 50 per cent and Liberia 33 per cent.He pointed out that there was a negative growth in its Ghanaian and its Diaspora markets recording negative six per cent per cent and negative 39 per cent respectively.

“Our gross premium remained largely driven by Fire, Engineering and Accident classes, which accounted for a combined 72 per cent of premium income in 2018. However, product risk is considered well contained given that exposure to high severity business lines remained very minimal.

“There are continuous efforts to grow other business lines as evidenced by the growth recorded in Special Risk (89 per cent) and Marine and Aviation (55 per cent) from 2017 to 2018. This helped Special Risk to contribute 13 per cent to the 2018 gross premium whilst Marine and Aviation improved to 8 per cent,” he pointed out.

The retention ratio of the firm, he said, reduced slightly by one percentage point from 93 per cent in 2017 to 92 per cent in 2018 driven by the increase in its oil and gas acceptances.